Portfolios: Patterns in brand penetration, market share, and hero product variants

Abstract

This research investigates the contribution of each stock-keeping unit (SKU) within a brand portfolio towards total brand penetration and market share, by adapting a method called Saturation Curve Analysis. The study utilises UK and US data on 90,000+ SKUs across 15 packaged goods categories. The results show that while the optimal number of SKUs in a portfolio is category specific, the top-selling SKU contributes around 50% of the brand penetration and 40% of sales. This establishes a benchmark for monitoring brand performance. These results emphasise the importance of having top-selling SKUs readily available to consumers, rather than sacrificing them over new product launches.